Birds represent the last living dinosaurs.

Throughout the years, I’ve made multiple references to the Rallysaurus as a bull market mascot.

As history repeats itself, we now wonder if the Rallysaurus has finally returned to extinction.

Assuming the answer is yes and the original Rallysaurus is indeed extinct, are we now witnessing it evolve into a man-made dinosaur bird software creation?

Let’s also assume that the “long in the tooth” Rallysaurus was driven by true economics. Solid fundamentals if you will, like decreasing unemployment or increasing corporate earnings.

In fact, the leading economic indicators have steadily risen.

The Fed, a huge reason for the strong economy, has been feeding yummy bonds to the Rallysaurus for the last nine years.

Then, the meteor hits.

Yesterday for the third time, the Fed demonstrated its intention to put the Rallysaurus on a starvation diet. (And not the Paleo kind!)

That leaves the market witnessing an evolution.

Computer generated birds are like high frequency trading algorithims. They are stronger, fly faster, and more flexible.

They do not require a special diet.

What then, does this impending new age mean for the market and for our maybe not-as-modern Modern Family?

Yesterday, the price movements of the Modern Family confirmed that the sector rotation from tech to more domestic growth was shaken not stirred by the Fed.

Today, only one of the Modern Family members closed green. Transportation.

IYT, a barometer of domestic economic growth, is either the old-world market’s champion or its stubborn hanger on.

Certainly, the Russell 2000 needs to help its Trans offspring along.

That means IWM, which did hold the pivotal 140 area, must find the confidence to overcome a potential ice age.

Like Alice in Wonderland, Big Brother Biotechnology holds a red and a green pill.

If IBB takes the red one, it will shrink and specs will flee. If IBB takes the green one, that could open a much bigger door for investors.

Then there’s Granny Retail. XRT has looked “frozen” for some time. Therefore, the newfangled version of herself, online shopping, must make friends with the dispassionate and superior algo birds.

One would think that Semiconductors (SMH) appreciate the computer-generated algo birds. After all, Semi’s created that monster.

Nevertheless, could the tech industry be under siege by the tech industry?

S&P 500 (SPY) 244.50 pivotal. Looks good above. Under 242 see 240.

Russell 2000 (IWM) Monthly channel top at 142-143 level. Either this takes a bigger lead, or that was it-party over.

Dow (DIA) Looks pretty good

Nasdaq (QQQ) 137.25 the 50 DMA support. Has to clear 141.50

KRE (Regional Banks) 56.00 pivotal with 53.50 the underlying support

SMH (Semiconductors) 81.92 the 50 DMA. Has to clear 86.50.

IYT (Transportation) Resistance all the way up to 172.89. Now, 170 pivotal. 168 a key support area

IBB (Biotechnology) 291-292 must hold and the elusive 300 must clear.

XRT (Retail) 41.00 pivotal and 42 the overhead 50-DMA. 40 support to hold

IYR (Real Estate) Broke from 81.00 which is now pivotal

XLU (Utilities) 53.25 area near-term support.

GLD (Gold Trust) confirmed warning phase but still like if holds 118 and clears 120

GDX (Gold Miners) I still want to keep a close watch here-have a sense this will rally. Question is when

USO (US Oil Fund) Fossil Fuel out of favor

TAN (Solar Energy) Until this closes a week out over 18.80 not much to say

TLT (iShares 20+ Year Treasuries) Confirmed accumulation day. 126 pivotal. 127.35 resistance, 124 support